Oil Rises for a Seventh Day on US Gasoline Stockpiles

Standard Oil Gasoline Station, Odell, Illinois, USA, along historic U.S. Route 66. (Photo credit: Wikipedia)

Oil rose to a seven-week high in New York after U.S. gasoline supplies unexpectedly shrank and housing starts climbed, signaling fuel demand may increase. Futures advanced for a seventh day, the longest run of gains since February. Gasoline stockpiles decreased 1.8 million barrels last week, the Energy Department said in a report. They were forecast to climb by 1.2 million, according to a Bloomberg News survey. Crude inventories also fell and petroleum consumption rose for the third week. New U.S. home construction increased in June to the highest level in almost four years, figures from the Commerce Department showed. “The weekly data showed reasonable demand for gasoline that’s not as weak as had been initially thought,” said Peter Luxton, an analyst at Informa Global Markets in London, who forecasts that Brent crude will trade at $105 to $110 a barrel over the next three months. “I’d hesitate to use the word tightness, but there’s not as much slack in the market as there’d otherwise have been.” ... Continue to read.

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